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The U.S-China trade war is increasingly influencing tech. Huawei has suffered a turbulent past week with key suppliers pausing work with the company, and now China’s largest chipmaker is planning to delist from the New York Stock Exchange.
Semiconductor Manufacturing International Corp (SMIC) announced in a filing published Friday that it plans to delist next month ending a 15-year spell as a public company in the U.S. The firm will file a Form 25 to delist on June 3, which is likely to see it leave the NYSE around ten days later. SMIC, which is backed by the Chinese government and state-owned shareholders, will focus on its existing Hong Kong listing going forward but there will be trading options for those holding U.S-based ADRs.
In its announcement, SMIC said it plans to delist for reasons that include limited trading volumes and “significant administrative burden and costs” around the listing and compliance with reporting.
What it doesn’t say is that this is linked to the frosty relationship between the U.S. and China, and already the company has played that rationale.
“SMIC has been considering this migration for a long time and it has nothing to do with the trade war and Huawei incident. The migration requires a long preparation and timing has coincided with the current trade rhetoric, which may lead to misconceptions,” a spokesperson told CNBC.
Still, it is impossible to ignore the current context. Huawei’s entry to a U.S. blacklist has paused its relationship with key suppliers including ARM, Qualcomm, Intel and Google, which supplies the Android OS for its phones, so SMIC’s decision to remove its financial links to the U.S. fees into fears of a bifurcation of U.S. and Chinese tech, deliberate or not.
SMIC’s shares dropped 4 percent in Hong Kong on Friday. Trading of its U.S-based ADRs crossed one million on Friday, that’s well above an above 90-day volume of nearly 150,000 per day.
The company is China’s largest chip firm, specializing in integrated circuit manufacturing with clients such as Qualcomm, Broadcom and Texas Instruments. SMIC made a profit of $746.7 million in 2018 on revenues of $3.36 billion. Its most recent Q1 results released earlier this month saw revenue fall 19 percent year-on-year.
There has always been tension around Chinese companies using U.S. public markets to go public, and not just from an American standpoint. Chinese companies are increasingly exploring other options, including Hong Kong — where Xiaomi went public last year — while a-soon-to-launch ‘science and tech’ board in Shanghai is hotly touted as an alternative destination.
The board launches in pilot mode next month, but already Chinese bankers and tech companies have found it challenging to deliver on expectations, as a Reuters report earlier this year concluded.
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If you’ve been out and about in Silicon Valley in the last month or so, chances are you’ve heard of “Alpha Girls,” a new book written by journalist Julian Guthrie about four investors who’ve made a big impact on the world of startup investing. The book recognizes them — Theresia Gouw, MJ Elmore, Sonja Hoel Perkins, and Magdalena Yesil — because they are interesting individuals, each with very different upbringings and skill sets and areas of expertise.
But they also succeeded in the venture industry during a time when they were almost always the only woman in the room, or at the conference, or in the middle of a team-building event. Elmore signed on with IVP in 1982, becoming a general partner by age 28. Yesil cofounded the dot com high-flier CyberCash before joining USVP as a partner in 1998. Perkins’s star also rose quickly. By age 29, she was a general partner at Menlo Ventures, staying nearly 22 years before launching her own venture fund. Down the street, Gouw was building a track record at Accel, where she spent 15 years before cofounding her own firm in 2014, Aspect Ventures.
We talked with Guthrie earlier today about these so-called alpha women and how they differ from the many other people who Guthrie has spent time with across her 20-year reporting career with the San Francisco Chronicle, during which time she authored earlier books about Larry Ellison and Peter Diamandis. We asked how much time she spent with each (“I think they were ready to block my calls and texts,” she laughed), and how long she worked on the book, including to write it (roughly two years).
But what we even more wanted to know was whether after working on the book, Guthrie views the venture industry as any more or less welcoming to women than at the outset of her research. “It is not as bad as it’s portrayed, in my opinion,” Guthrie told us. “There are success stories.”
Still, Guthrie noted that each of these investors had to grapple with much that a man might not. Some of these were mundane but constant considerations, including, “Should you take notes or not? When do you speak up? How do you network? Do you go to these boondoggles when it’s all guys?”
Said Guthrie, “Some of these things were shocking to me, coming from my own very gender-neutral experience as a reporter.”
Yet there were other ways they had to alter themselves. She says Elmore quickly learned that if she wore a dress to a board meeting, for example, it would elicit compliments that weren’t necessarily expected, so she soon cut her hair and began wearing suits. Meanwhile, Perkins and Gouw participated in male-dominated events on the theory that you can’t win if you don’t play the game. For Perkins, this meant skiing alongside former Navy Seals when she was still a relative novice on the slopes. For Gouw, it was getting elbowed in the stomach during a competitive game of flag football. It was “not so much about emulating men but steering the spotlight away from their femininity, so it didn’t become a distraction,” Guthrie told us.
Interestingly, one of the more fundamental ways the women seemed to differ from their male colleagues was in their dealings with Guthrie herself, she said. She noted that many of the men she has interviewed — including Ellison, Diamandis, Richard Branson and Elon Musk — have been “happy to talk about their vulnerabilities, because it kind of rounds them out. It softens them in a nice way.” She observed that women who’ve enjoyed success meanwhile have a “much harder time sharing their mistakes, their regrets, their vulnerabilities.” Because women are often provided less room for missteps — or they perceive that they have less room, “I had to tell [the investors] again and again that it was important that we tell the good, bad, and ugly — not because I was seeking scandal but because I wanted these stories to be honest.”
Before we parted ways, we asked Guthrie about women and money, after she volunteered that it’s a “tricky issue for women. If you go after too much, you’re greedy; if you marry someone with money, you’re a gold digger.”
She pointed to a Forbes piece from last summer that called Gouw “America’s richest female venture capitalist.” Gouw apparently felt uneasy about the story and participated in it mostly to draw attention to her work with the advocacy organization she helped cofound, called AllRaise. But as Gouw told Guthrie, it’s had a somewhat surprising impact. “She was a serious player before, but it kind of gave her street cred” with those who pay attention to Forbes’s Midas List and other forms of score-keeping.
It’s a good thing, suggests Guthrie, who has been promoting her book to women in numerous industries, including in homebuilding and law and in medicine. “You see the same barriers across them all,” Guthrie said. “But you’re also seeing these women’s groups and networks becoming more powerful across all these industries, where women are speaking out and creating these sisterhoods.”
They’re agreeing to more hard-earned self-promotion, too. They see it as an increasingly competitive tool, and, as Guthrie puts it, “It’s not boasting when it’s based on fact.”
Pictured above, left to right: Theresia Gouw, Sonja Perkins, MJ Elmore, Magdalena Yesil, and Julian Guthrie.
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Microsoft appears to be readying a special Fortnite-style version of the company’s Xbox One S console. WinFuture reports that Microsoft will release a purple edition of the Xbox One S in the coming weeks, in a bundle designed for Fortnite fans. The Xbox One S Fortnite Limited Edition will reportedly include a new “Dark Vertex” skin and 2000 V-Bucks in-game currency. The bundle is also said to include a month of Xbox Live Gold, EA Access, and Xbox Game Pass.
It’s not clear exactly when Microsoft will announce this new color variant, but it’s rumored to debut at $299 with 1TB of storage and the Blu-ray optical drive. This certainly isn’t the first time Microsoft has customized an Xbox One S console for a game. Microsoft created a special...
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Brian Krebs has revealed that a company that primarily works in real estate insurance has left as many as 885 million records exposed on its website — going back to 2003. First American Financial Corp’s big mistake should have been obvious to anybody who would have given a second thought to security. If you had the URL for any document on its website, you could simply add or subtract one to a number in the URL to access another document.
Given the type of business this company is in, those records include incredibly private information. Krebs spoke with Ben Shoval, who brought the exposure to his attention and who says the documents potentially included “Social Security numbers, drivers licenses, account statements, and even internal...
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